Leading national mining and civil contract NRW Holdings Limited (ASX: NWH) has announced another bolt-on acquisition alongside contract wins for its DIAB and RCR business units.
NRW has completed the acquisition of Bunbury based company OFI Group Holdings Pty Ltd. OFI specialises in industrial electrical engineering, automation, switchboard design and manufacture, instrumentation and design and construction within key sectors including resources, government and defence and fuels and explosives.
The acquisition augments and enhances capabilities and service delivery within the NRW’s METS division, which comprises RCR Mining Technologies, DIAB Engineering and Primero Group.
OFI has an established history of collaboration with RCR and will continue to work closely with the RCR team.
NRW paid about $4 million for the OFI business, which is expected to generate revenue of $40 million next financial year. Of this revenue it is expected that approximately half will be internally generated through demand from the METS companies.
NRW also announced that DIAB had reached an agreement with IB Operations Pty Ltd for crusher and supporting infrastructure maintenance works at Iron Bridge.
The contract is valued at circa $30 million over three years, with an optional two-year extension, and expected to commence in May. At peak, approximately 50 personnel will be engaged on site.
Meanwhile, RCR has received a notice of award from Chichester Metals Pty Ltd for design and construction of the primary crushing facility for the Christmas Creek Hall Hub Development Project. The contract valued at circa $34 million and will commence immediately.
After successful delivery of the Hopper 10 crushing facility at Fortescue Metals Group’s Cloudbreak mine earlier in 2022, this award is strategically significant for NRW as it showcases the company’s engineering-led delivery of innovative solutions. RCR is partnering with Primero, which will provide engineering support and construction services.
Commenting on the contract awards and the OFI acquisition, NRW chief executive Jules Pemberton said:
“I am delighted to announce that RCR and DIAB have been awarded these contracts with Fortescue Metals Group, building on their relationships and showcasing their expertise in that sector.
“I would also take the opportunity to welcome OFI into the NRW METS division and utilising the capabilities they will bring to the Group.”